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tv   [untitled]    October 25, 2012 7:30am-8:00am EDT

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you said was well surely you're glad that you have so much gold can i see it and they said no it's all in new york and time there's been a growing movement in germany to try to figure out where the gold is germans are concerned now that the global financial crisis is entering into it and a game of sabra bond blowoff and the only thing left will be gold people in germany want to know what is sixty percent of their gold actually held out of germany are we really that exposed to this downturn sure and it also shows how long these financial and currency wars go on i mean everybody always looks for an immediate win like that decisive outcome right then but this is like four years ago that we were there and get to the gold antitrust action committee has really been pursuing this doggedly but i want to also flashback to a little video we made at that time to just show you how how little understanding there was in germany of actually where their gold supplies were germany german
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people alan greenspan and ben bernanke why you know you're valuable gold for us treasury bonds and us dollars that are entirely worthless. don't do it german people hold of. gold value the u.s. dollar value it's the currency hold on to german people. so as you saw from that video there was nobody there in the audience in the middle in the heart of frankfurt and today however look at the headline max german court demands buddhist bank audit sovereign gold holdings so the german court of auditor's the. cough has demanded that the bundesbank undertake an audit of its gold reserves in an audit the fed style effort the court wants to ensure that the nearly three thousand four hundred tons of gold is in fact in existence because stocks have never been checked. for authenticity or wait that's according to the
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bundesbank what they told the corps is they've never felt it necessary to actually audit the gold even check that it's there because they trust the bank of england the us federal reserve bank of new york and the bank of france where all their gold is very well the bank of england and the new york fed a bit the lending that gold out to support the really high profit cation schemes that created the multi hundred trillion dollar bubble so i think germany will be shocked to find out that their gold doesn't exist any more they're going to buy it in the open market and as they do so they'll spike the prices even higher prices the central banks have been buying gold now for several years when we started telling them to buy central banks central to buy gold and as a result they're causing their own demise because as they realize they don't have enough gold to survive they have to buy in the open market they're going to force surprise back up to that ten thousand dollars an ounce a level that is our target and now back then in two thousand and eight when you
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were there in the center frankfurt asked telling the people that they should hang on to their gold of course everybody assumed that they had gold they thought they had the shorts on now in the ocean and the tide has gone out which is the financial crisis and the germans found out that they actually don't have all that gold that they felt so secure holding well just like the german banks got hoodwinked by wall street by selling them junk bonds that moody's and s. and p. had given aaa ratings to that was a scam that was a scheme to defraud german banks the german people however have a tremendous sense of guilt so they didn't focus on this they didn't want to rekindle the whole sixty years worth of german bashing so they allowed themselves to be sold toxic sludge from wall street wall street of course playing down this they gave junk bonds aaa rating they ended up in the blender spank and frankfurt in german banks and european banks now to add insult to injury wall street is saying
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you know you don't have your gold i there are so germany i know you've been quiet for a number of decades but maybe it's time to think soft preservation. well i think they're putting their toe in the water self-preservation because this story then goes on to say the decision means negotiating with three foreign central banks for a physical verification but anticipation the buddhist bank has begun the process of shipping fifty tons per year from the fed back to germany for the next three years while that means nothing i mean they're going to buy gold on the open market is it or not to disclose hundreds of tons of thousands of tons happily by the open market as ship it off and say oh here it is there's no audit trail there's now standard for accounting there's no bar number gold bar there's nothing is just a hodgepodge of not accountability it's similar to what we've seen in the banking system for the past few years and still accountability there's no chain of
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ownership it's just gold that they're going to try to open by the open market they'll not buying it from some poor indian people you know india and the indian population has eighteen thousand tons of gold is the biggest gold hoard in the world the indians are set to inherit the earth as soon as the us bubble and bonds and u.k. market implodes even mervyn king today in the paper said that the u.k. bond market is set to implode and there are you know every central bank in the world is buying gold to to hedge themselves against this sovereign bond collapse sovereign bonds are turning a two hundred fifty year high in so much bigger bubble then the to lowball bubble it's a bigger bubble than the south sea bubble central banks are buying gold germany saying oh my god women are gold and wall street is saying we soldiered junk rated aaa and we told you your gold is safe but it's not germany. you're getting screwed buddy you did say that the germans are filled with guilt i think when they come to audit
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their gold supplies here in the u.k. at the bank of england they'll find a safe deposit box filled with guilt. that's right they were placing their guilt with guilt there you go there's a journey there's a yes you can get oh by the way the price is crashing oh well here's an iou for a worthless paper buys friends and i say goodbye to germany clarkson on your way out he simply lover of the germans as it. was speaking of coming to london to look for their gold next headline max more on the german gold reserves controversy where is the gold so this is jesse's cafe american covering this story he's covered some of the stuff we've already looked at but then at the end he talks about the latest from gas to has no it is the gold antitrust action committee in america they've noticed that there's been some sales of gold german gold allegedly from london and so the fact that they actually haven't been made an official announcement about
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this they say means that the lack of announcement of the sale of the german gold in london suggests that the sale was actually part of a gold swap with another central bank like the new york fed of course the u.k. has been selling german gold to offset all of the losses we see in the u.k. banking system the london whale they lost billions of pounds then you know the m.f. global remember jamie dimon of j.p. morgan stole a billion dollars directly out of customer accounts how do you make hold on those stolen signs well let's sell some gold gold has intrinsic value there's always a market price for gold nobody not doesn't accept gold has to been that way for five thousand years now the germans are you know it's really really i think going to be a shock that they're going to really inflame the end and tegan isms from nineteen thirty three nineteen forty but it gets in keeping now with this world war three scenario which is the currency war so with this story about the gold being sold out
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from london now remember the courts have now ordered the buddhist bank to conduct an on. it so got to says the powerful implication here is that german gold in london was sold at the behest of the united states and in exchange germany took title to united states gold vaulted in the united states this way the buddhist bank could continue to claim ownership of the same amount of gold without lying at least not technically so again this is that. the case in that you talked about in london of course is a place where they're allowed to reach high profit kate infinitely so in fact german gold held in england even though it's probably smaller in terms of the quantity compared to the us federal reserve bank of new york is probably really profit is so much times over well this is why the u.k. economy is at risk of imploding that's why we we do our show in the u.k. we do the show in london too because a lot of front row seat and watched the city of london collapse they have the
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lowest stock pile of gold as a relative to percentage the g.d.p. of any of the g. twenty nations gordon brown foolishly sold half their gold at a you know one hundred year low and now that the sovereign banks around the world are buying gold and the sovereign bond markets topping out getting ready to crash then you can say is at risk the british pound is already crashed against gold and silver how badly want a crash going forward a lot worse that's why we're here to watch the carnage behind me in london to bring it to you viewers around the world germans if you're upset by how badly the u.s. in london has screwed you at least watch the show because we'll try to get some retribution in as david cameron will call it in his speech why he should bashing honey oh david you're so bad why did you strain your purse with them oh i was so frightened when david cameron is seeking retribution oh so scared go back to some
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of that you know back style shower pleasure. just be frank about it i mean you know the deal there but that's why they run such. and effective government isn't back to brown's bottom and you know talking about you know here i love to go see a razor people bicycling with their bottoms fleshing out what's pippa middleton the royal heiress contingent person what i want to talk about her borrow what do you prefer whether it's cameron or as little code right friends of the bottoms are fixated on their bottoms you know what country's going into the toilet because they can still focus you know their bottoms to your bottom of bottom and gold has been reached and we're heading to ten thousand dollars an ounce of gold that's nearly bought of me don't worry about ok thank you out of your bottom and focus on your economy for a little best clergymen slime bucket ok this britishness last they had lying
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here so when we were there in germany at the buddhist bank we did mention a quote from alan greenspan regarding balance bottom i.e. he selling half of britain's gold supply he said that it was a basically i'm paraphrasing that it was a stupid idea because in extremis as germany learned during world war two is that the only currency you can use always is gold so it was dumb to get rid of it and this is one of the things why we said all individuals should only gold or silver in this currency war time because i am epic plan to conjure away debt and dethrone bankers so there is a magic wand after all a revolutionary paper by the international monetary fund claims that one can eliminate the net public debt of the us at a stroke and by implication do the same for britain germany italy or japan the conjuring trick is to replace our system of private bank created money roughly ninety seven percent of the money supply was state created money we returned to the historical norm before charles the second placed control of the money supply in
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private hands with the english frequented act of sixteen sixty six yes and if my sister had a brother. all right stacey lambert thanks for being on the kaiser report thank you max stay tuned for the second half i'll be speaking with gold bug and author dominick christie yes that's his actual name. more news today carlin says once again flared up. these are the images the world has been seeing from the streets of canada. showing corporations through today.
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you know sometimes you see a story and it seems so you think you understand it and then you glimpse something
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else you hear or see some other part of it and realize that everything is ok you don't know i'm tom harpur welcome to the big picture. welcome back to the kaiser report imax kaiser time out of john interest me resident gold bug at money week and author of the new book a life after the state welcome to the kaiser report thank you very much max pleasure to be back. it doesn't express me we're talking about germany now has significant is the german court order
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demanding that the bundesbank audit germany's gold holdings. we don't know how significant it is because we don't know if the gold holdings will actually be audited but the big suspicion is that there is a double entry on that gold that the gold has been leased out to somebody else and we will never know the truth because of this is that suspicion wanted given the recent history of the m.f. global scandal where collaterals re i participated where the whole derivatives market when we find that collateral is being alone hundreds of times again why not why wouldn't germany's gold be loaned out a few times exactly why wouldn't it and it would be no surprise if it is. and you know that gold has never been properly audited that's what's so amazing about this revelation it has never been audited and then you go one stage further and then you think the american go despite repeated claims now america is of course the world's biggest gold hold with two hundred sixty million ounces that gold hasn't been
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audited in. over fifty years and every time attempts have been made to order to it what always happens is we'll go we'll give you a little bit and you can audit that deserter saying mr yeah absolutely and you know that's a hell of a lot of gold one hundred million ounces or in the case of america two hundred sixty million or ounces that would take a heck of a lot of order saying but given the importance of those gold reserves you think you just think it would happen and all we have at the moment is the assurances of central bankers which are to coin a phrase only worth the paper that they're written on right now the gold is becoming here's the important now because there's there's two flights of quality going on in the world today people who are frightened by this financial collapse and the geo political unrest there are moving either into bonds and they're also moving to some degree into gold now bonds or trade. at a close to two hundred fifty year high. the government bones is the mother of all
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book bubbles and there's so much money waiting on the sidelines waiting to pile into a short on gum bones when that one goes belly up you know that's properly you know run to the hills take your tens take your guns and crush only thing and meantime the central banks themselves are buying gold that the same banks are issuing all these bonds even other record supply of bonds the bonds are still having highs yeah there's gold is a limited supply and we've seen some of the market certainly hasn't yet and has really reflected that the collapse of the bond market well if you look at the ratio of gold to government debt or to government balance sheets a gold hasn't been in a bull market at all it's been totally flat it's i mean obviously it's risen in currency terms but the ratio of gold to government debt is flat right so as the gold price has been moving up the government seven ensuring more debt so in fact the you could say the bull market in gold rolls at the bond market hasn't even started yet you could said you could say that and historically we know that bull
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markets go in phases and we're at the maybe a phase one is finished where there's been accumulation if you have three phases to a bull market the stealth face the awareness phase in the blow off stage i would say we are midway through stage two so if you're in front of people as a performer as a writer you know you're renaissance man yeah dominic so what about the people you say it's not a secret but then again less than two percent of investor last listener i went to a conference last week bill born and marc farber both spoke at the conference the how can conference you know it was full of hardcore austrian economists sound money bugs libertarians those kind of people maybe hundred fifty two hundred mark far as said to the audience. who here owns gold and i would say three course of the audience put their hands up and then the chat. and around the said ok who owns who owns more that who has moved five percent of the net worth in gold
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excluding e.t.s. only twenty percent of the room put their hands up and that was maybe even less in twenty's and thirty's haku go folks that isn't joe public and so you know go physical go is still on the road ok so to explain e.t.f. exchange traded fund it's a proxy for gold it tracks the price of gold some would argue that it's paper gold and in some cases like the one with the g l d ticker symbol in new york it's not really gold at all whereas the ones in canada or are eric sprott as an e.t.f. which is actually the physical bill and so one must be aware of what's going on but your point is well taken that even amongst the hard core professionals the ownership at more than five percent of the actual stuff not the paper stuff is low now spread across the entire economy and global wealth asters can i interrupt you just want to at least do yeah let's say the germany's goal isn't that yes then suddenly and then you know that it's been leased out to someone else the implications of that are just suddenly germany the second biggest economy with the
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biggest economy on the planet doesn't have doesn't have gold what value then does its currency have the implications and then what happens between relations between germany and the us i think what you're alluding to here and the old animosities between germany the rest of europe america seem to be increasing around a theme some call world war three the currency war your thoughts. i don't think there's going to be who between germany and america but you know economic crises usually end in a war of some kind and the biggest fear is going to be between china and the states is it going to be between the muslim world in the crate you know could be any devil out of the treasury in the u.k. when germany comes for the gold gives them instead a bunch of gilts iou and say well you know the gold but here are some bonds now in germany i mean ok i mean that there there are. webs well i imagine the the reaction of central banks in that case would be immediately to take those gilt sell them and
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buy gold only in the market that's going to dramatically push the good the gold price up montreal where the guilds actually means gold. interesting ironic tragic to be the judge all right so another big player in the gold market is china. sensibly according to the latest reports a thousand tons or so they built up from five hundred tons in a pretty rapid amount of time they're also the biggest miner of gold and they keep all the mind mystically rumor is heard some inside scoop on this that they're out there around the world secretly hoarding gold to make another surprise announcement that they've taken that one thousand ton position a two or even higher thousand tons or what here well. it's certainly china is the world's biggest go producer i had dinner about a year or two ago with the head of gold at h.s.b.c. and one of the things that he described most of the world's gold goes through
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h.s.b.c. at some stage and one of the things he described looking at the gold in his vocals is he despite the fact that china is the biggest producer he never sees bars with chinese stamps on it in other words china is holding all their own gold they do not export any of it and you know the implications of that you know every few years china makes an announcement about how much gold it has and i think the next time they make that announcement is going to be considerably higher than the amount they have now i also hearing rumors about african barrick having trouble with their mines in. africa or in the chinese making plays on african barrick huge go produce . american barracks african subsidiary. that have been very goat spawn out its african assets into a separate company not just african barrick ok the canadian or american. canadian i guess so well this is an interesting situation because you have. as i said at the top of the interview people who are frightened by the g.o.p. politics of our era who are frightened by the financial crisis are running to two
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places bonds and to some degree gold but these are two diametrically opposite investments and a lot of why they are so somebody is going to be the huge loser and somebody is going to be an enormous winner i think what we can clearly see why is are people so . they soon that bonzo me ask this question assume that bonds are safe they don't understand that bonds are as risky as anything else why did you write for money wait moneymakers kind of you know goes to the mid-market right it's not meant as a professional it wouldn't contrary it is it is aimed at people who have money but don't necessarily work in finance ok so these people even even of that caliber of sophistication which is above the average yeah they still don't get the side here for the most part that bonds are as risky as anything else given fluctuations in interest rates well i mean you know the good thing about money week is it does try to put all the different points of view across and there are some writers who write for money week james ferguson who's been very pro-government bones and there
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are other writers myself included who have said avoid the now up to now james folks and schools been right a month being wrong but i still maintain that when this bond market i think it's an artificial market central banks printing money to buy their own government bonds the u.k. bank of england makes up now something like fifty percent of the buyers of u.k. bones now that's an artificial market the bank of england has become the market and if there was an actual genuine market the government bonds then yields would be considerably higher and this artificial market has created a situation where governments don't have to make the cuts that they have to make instead because they're able to sell their debt cheap. so governments have continued to expand when they should be cutting and the market can stay irrational longer than you can stay solvent to misquote keynes but the point is when this goes . i just think you know hide it done at first me you've also written
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a book tell us about it yes i have got a book out funding it with a new publisher called unbound it's a book calling fairy much for change i tried to explain the economic crisis and the drivers of the economic crisis but i found alternative explanations ike i place the entire blame for this economic crisis and the bloated financial sector in the bloated government sector i see it is entirely a consequence of our flawed system of money and so i i try to explain the economic crisis in these terms i'm trying to do what. malcolm gladwell who wrote outliers did for his subjects i'm trying to do a similar thing about economics and about this financial crisis and so and i offer solutions now i should say a book explaining the economic crisis all no but my background as a comedian and when you when you're on stage as a comic if you say things that people don't understand they don't laugh so it makes you obsessed with clarity and one of the problems i think the financial sector as
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a whole has is this use of language that people just don't understand and so i've taken great pains to write this in a totally comprehensible way and you know every time i write something for money week i try and write something that i think even my mother would understand she's my kind of target if you like so one of the great efforts of this book has been to to put it all in a language that people can follow there's no mom a bookmaker blood brokes. you know she's a gold bug down a treasure thanks so much for being on the kaiser report my pleasure max thank you all right and that's going to do it for this edition of the car as a reporter with me max kaiser and stacy herbert i thank my guests dominic frisby if you are some e-mail please do so at kaiser report at r t t v are you until next time x. cars are saying well you are. on. what
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